The Federal Reserve Bank of Philadelphia's Nonmanufacturing
Business Index of current conditions in February rose to 38.0 from 33.3 during
January. It was the highest level since June 2015. Forty-four percent of
respondents reported an increase in current activity, while six reported less.
The expectations index at the company level for January eased to 57.5, a
three-month low. The regional expectations index declined to 33.0, also a
three-month low.

The new orders index backed away from its two-year high with
a lessened 33% of respondents reporting an increase in orders. The sales/revenues
index similarly declined sharply. On the employment front, the index of
full-time permanent employees declined to a three-month low, while the index for
part-time or temporary employment held steady m/m. Wage & benefit cost gains
weakened. The average employee workweek index declined to the lowest point since
July. The capital expenditures reading on physical plant as well as equipment
& software fell sharply.

The index for prices paid retraced three months of increase.
The index of prices received turned negative for the first time since 2012.

The Philadelphia Fed figures are diffusion indexes which are
calculated by subtracting the percent of respondents reporting poorer business
conditions from those reporting improvement. So, readings above zero indicate
more positive than negative responses. These indexes have a good correlation
with growth in the series covered. The data are available in Haver's SURVEYS database.